Issue link: http://www.e-digitaleditions.com/i/375553
28 FEDA News & Views ability of a sale. Since many foodservice items are now classified based on the density of the shipment, failure to note the density of the item next to the proper National Motor Freight Classification (NMFC) description can easily result in much higher rates. Remember, carriers have the right to apply the highest clas- sification that applies for the commodity if the density is not specified on the B/L. For example, a few times a year the NMFC makes changes to commodity classifications that affect FEDA members. Of late, a change to the classification standards of Aluminum Articles (including, but not limited to pans, plates or trays, cups, dishes, wastebaskets, etc.) has converted many commonly shipped foodservice items into a density-driven item. The mistake many shippers make is providing a limited description when shipping a related item, which results in a high- er freight charge than anticipated. Instead of using "Aluminum Trays," as the description on the B/L, the proper description would read: "NMFC #13120 Aluminum Trays Sub 4 Class 150." The first (and vague) description leaves too much to question and upon inspection the carrier would have the right to apply the highest classifi- cation applicable to Aluminum Articles (CL 400), if they chose to do so, because the poor description does not explain exactly what is being shipped. The second, and proper description, provides clear direction on what is being shipped and what the corresponding classification should be. The "Sub 4" portion refers to the PCF (pounds per cubic foot) of the item, which determines both the density and classification of the item. Filling out the B/L correctly is more than half the battle in today's LTL environment, where carriers are making profit centers out of weight and inspections. The Bottom Line LTL carriers are currently in the driver's seat because the demand for capacity outweighs the supply that is currently available. Due to the driver shortage, carriers couldn't add much capacity to the marketplace if they wanted, so it is likely that they will only tighten up on the enforcement of rules and regulations, which will affect you as shippers. Therefore, it is very important that everyone does their due diligence in clas- sifying their freight and in shipping orders that are staged on a pallet properly. This will protect you against scenarios where profit margins are eroded due to unexpected shipping costs. If you have any questions or need additional information, please reach out to myself or any of the ReTrans team members. We are always here to help. Industry Insights continued Industry Insights continued Filling out the B/L correctly is more than half the battle in today's LTL environment, where carriers are making profit centers out of weight and inspections.